5 Next Steps After Raising a Series A

After talking to, and working with, several entrepreneurs that raised a Series A round in the past year, I’ve come to better understand a few of the common next steps once the money is in the bank. For most entrepreneurs, raising a Series A is a full-time job such that once it’s done they want to dive back into the business. Only now, expectations and complexity have gone up.

Here are five next steps after raising a Series A:

Choose a System to Manage the Business – To get the business to the point that you were able to raise a Series A required a level of planning, communication, meetings, and more. Now, it’s time to choose, and institutionalize, a methodology to run the company as it scales to the next level.

Hire an Internal Recruiter – 80 – 90% of the new capital is going to go towards hiring people. Bring on someone in-house to recruit directly as well as interface with external recruiters for the hard-to-find positions.

Find a Venture Debt Provider – Venture debt is one of the most cost effective and least dilutive ways to grow a startup. After raising a Series A, banks like Silicon Valley Bank and Square 1 Bank will be eager to offer a line of credit or a term loan.

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One thought on “5 Next Steps After Raising a Series A”

I’m biased but I think another thing to after a Series A is to hire an operational finance leader (Director of Finance, VP of Finance or CFO) who understands the connection between operational decisions/changes and their financial impact. A person like this will help the business allocate resources more effectively as it scales.